ESAF Small Finance Bank Company Profile and Industry Insights

ESAF Small Finance Bank is a Indian banking company that operates as a small finance bank. It was founded in 1993 as a non-banking financial company (NBFC) and was granted a small finance bank license in 2017.

ESAF Small Finance Bank is headquartered in Thrissur, Kerala.

The bank provides a range of financial services, including deposits, loans, and payment services, to individuals and small businesses.

ESAF Small Finance Bank has a strong presence in southern India, with a network of over 250 branches and 500 ATMs.

ESAF Small Finance Bank has a strong financial foundation, with a net worth of ₹1,047 crore as of March 31, 2022.

The bank's total business has grown significantly, reaching ₹12,434 crore in FY 2021-22, an increase of 45% from the previous year.

ESAF Small Finance Bank has a robust deposit base, with a deposit growth rate of 47% in FY 2021-22, driven by the bank's expansion of its branch network and increasing customer base.

The bank's asset quality has also improved, with a gross non-performing assets (GNPA) ratio of 2.37% as of March 31, 2022, down from 4.35% in the previous year.

ESAF Small Finance Bank has been consistently profitable, with a net profit of ₹145 crore in FY 2021-22, up from ₹83 crore in the previous year.

The bank's capital adequacy ratio (CAR) is 16.58% as of March 31, 2022, well above the regulatory requirement of 9%.

The bank's total business is expected to grow further, driven by its expansion plans and increasing customer base, which will help it to achieve its goal of becoming a mid-sized bank by 2025.

ESAF Small Finance Bank's share price has been on a downward trend, slipping to a loss of Rs 190.07 cr in the Sep 30, 2024 quarter after three consecutive quarters of profits.

The company's quarterly top line performance has seen a decline of 3.93% QoQ, which is the lowest in the last three years.

Here are the key share price returns for ESAF Small Finance Bank:

ESAF Small Finance Bank's share price has been on a downward trend, moving down by -0.67% from its previous close of Rs 42.04. This decline is a significant change from the company's previous quarters, where it posted profits for three consecutive quarters.

The company's quarterly top-line performance has also seen a QoQ revenue decline of 3.93%, which is the lowest in the last three years. This decline in revenue is a concerning sign for investors.

In the past year, ESAF Small Finance Bank's share price has taken a hit, with a decline of -40.68%. This is a significant drop, especially considering the company's previous performance.

Here's a summary of the company's share price returns over different time periods:

It's worth noting that the company's IPO was a significant event, with an IPO size of approximately ₹463 Crores and an IPO price band of ₹57 to ₹60 per share.

The total promoter holding in the company has almost stayed constant in the last 6 months.

This stability in promoter holding suggests that the company's key stakeholders are committed to its growth and success.

The data indicates that the promoter holding has remained relatively unchanged, giving investors a sense of security and stability in the company's future prospects.

In the last three months, foreign institutional holding of the company has almost stayed constant.

This stability is a good sign, as it suggests that investors are confident in the company's performance.

The foreign institutional holding has remained relatively unchanged, which is a testament to the company's consistent financial health.

This stability can also be seen as a positive indicator for the company's future prospects.

Foreign institutional investors are known to be savvy and informed, so their continued interest in the company is a vote of confidence.

ESAF Small Finance Bank is a small finance bank with a focus on unbanked and under-banked customer segments, especially in rural and semi-urban centers.

They cater to areas that are often overlooked by traditional banks, providing financial services to those who need them most.

ESAF Small Finance Bank has a focus on unbanked and under-banked customer segments, especially in rural and semi-urban centers.

Their business model is centered around serving the needs of customers who are often overlooked by traditional banks.

With a focus on rural and semi-urban areas, ESAF Small Finance Bank is well-positioned to provide financial services to those who need them most.

This approach allows the bank to make a positive impact on the lives of its customers and the communities they serve.

By targeting unbanked and under-banked customer segments, ESAF Small Finance Bank is helping to bridge the financial divide and promote financial inclusion.

The ESAF Small Finance Company has a wealth of information available, and I'm happy to break it down for you.

The company's chairman has delivered a speech, which provides valuable insights into the company's vision and goals.

You can also find a detailed history of the company, which is a great resource for those interested in learning more about its background.

The directors' report is another important document that offers a comprehensive overview of the company's performance and financials.

If you're looking for background information on the company, you'll find it in the provided section.

The company's management team is responsible for overseeing the day-to-day operations and making strategic decisions.

Here are some key details about the company's listing:

ESAF Small Finance Bank has reported a net profit of ₹52.19 crore for the quarter ended September 2022, marking a 10.3% increase from the same period last year.

The bank's total income grew by 25.3% to ₹335.59 crore, driven by a significant increase in interest income.

ESAF Small Finance Bank's net interest income rose by 22.5% to ₹241.19 crore, driven by a 25.3% growth in interest income.

The bank's asset quality improved, with gross non-performing assets (NPAs) decreasing to 3.35% from 4.23% in the same period last year.

ESAF Small Finance Bank's capital adequacy ratio stood at 17.53% as of September 2022, well above the regulatory requirement of 9%.

The bank's deposit base grew by 22.4% to ₹8,555.19 crore, while its loan book expanded by 23.2% to ₹7,111.85 crore.

The bank's return on assets (ROA) improved to 1.55% from 1.33% in the same period last year.

ESAF Small Finance Bank's return on equity (ROE) stood at 15.15% as of September 2022, indicating a healthy profitability.

ESAF Small Finance Bank's ROE (Return on Equity) has been a subject of interest. In March 2020, it stood at 19%, a significant drop from its 2019 figure. However, in March 2024, it rebounded to 20%.

The bank's ROE has fluctuated over the years, with a low of 4% in March 2021. Meanwhile, its ROA (Return on Assets) has been relatively stable, with a 1.63% figure in the latest available data.

Here's a snapshot of the bank's key ratios:

In comparison, ESAF Small Finance Bank's peers have varying ratios. For instance, Au Small Fin Bank has a ROE of 0.00% and a ROA of 0.00%.

Let's take a closer look at the ratios that have been impacting ESAF Small Finance's performance. ROE % has been a key indicator, fluctuating between 19% and 20% over the years.

In March 2019, ROE % was not available, but by March 2020, it had jumped to 19%. This was followed by a significant drop to 9% in March 2021, and then a further decrease to 4% in March 2022. However, the trend reversed in March 2023, with ROE % rising to 19% once again.

Here's a breakdown of ROE % over the years:

These fluctuations in ROE % highlight the importance of monitoring key performance indicators over time to gain a deeper understanding of a company's financial health.

When comparing financial ratios, it's essential to consider the performance of similar companies. In the case of ESAF Small Finance, we can see that its peers have varying levels of profitability.

The ROE (Return on Equity) of ESAF Small Finance stands at 17.07%, which is significantly higher than Au Small Fin Bank's 0.00%. This indicates that ESAF Small Finance is able to generate more profits from its equity compared to its peer.

ESAF Small Finance's ROA (Return on Assets) of 1.63% is also higher than Jana Small Finance Bank's 2.04%. This suggests that ESAF Small Finance is able to generate more profits from its assets compared to its peer.

Here's a comparison of the PE (Price-to-Earnings) ratios of ESAF Small Finance and its peers:

As we can see, ESAF Small Finance has a significantly higher PE ratio compared to its peers, indicating that its stock price is relatively high compared to its earnings.